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6 Stocks to Sell in March

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Stock to Sell #1 – Best Buy (BBY)

Leading consumer electronics retailer Best Buy (NYSE:BBY) is slipping despite its 4,300 stores and broad name recognition. Intense competition from online retailers and thin operating margins have contributed to a sharp downturn in the stock. Even though Q4 earnings beat analysts’ estimates by $0.10, earnings estimates for next year are flat and insider selling is high.

Technically, the stock is in a bear market. In late October, its price fell through a quadruple support line at $17 before finally making a bottom at about $11.50. A recovery rally has taken the stock back to major resistance at $17-$18.50. MACD flashed a sell signal in late February.

Sell BBY if you own it. Traders should sell it short at the current price with a trading objective of $13. Short selling is a speculative technique and not suitable for every investor. Stop-loss orders should be placed when a short sale is executed to protect against potentially unlimited losses. Also, please check with your broker for any special margin requirements and the ability to borrow shares.

BBY Chart
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Trade of the Day Chart Key 

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